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Futures Market Technical and Fundamental Recap

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jun 11, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today's Futures Analysis summary

    The weaker U.S. Dollar led to strength in the commodity markets. Traders were buying commodities in anticipation of the return of inflation.

    August Crude Oil is holding $70 a barrel which is an indication that the demand driving this market is real. Hedge funds continue to provide the support by buying dips.

    The closing price reversal bottom in the September Treasury Bonds is a strong indication that the shorts may finally be ready to take profits. Today’s auction which was better than expected provided the fundamental fuel this market needed to at least put in a temporary bottom.

    Stock Indices remained firm but traders still backed away from pushing this market substantially higher. There is no question this market is overbought, but with Treasury markets falling, what choice do investors really have? Maybe a bottom in the Treasury Bonds will lead to a profit-taking break in the equities.

    Despite the rally in the August Gold market, the chart pattern suggests that gold may be losing upside momentum. The trade through 943.80 on Thursday turned the main trend to down, but the strong buying put the market in a position to change the trend back to up on a trade through 966.70. Unless this market attracts news sellers near 966.70, look for a choppy two-sided trade over the near-term.

    New crop December Corn continued to trade inside of a tight range. This indicates impending volatility but the direction is uncertain. If you are trading the trend then expect another move to the upside. Weather is most important at this time. Since much of this crop was planted late, rain is going to be necessary to speed up its growth progress.

    Weakness in the U.S. Dollar helped push September Cocoa to a level not seen since February. Look for this market to test the Feb. 10 high at 2899. The only thing that can stop this market now is a turnaround in the Dollar.

    December Cotton is in an uptrend but struggling. A new higher bottom was formed at 58.76, but the trend turns down on a move through 57.96. Fundamentally, growing conditions are ideal. Traders may be holding this market high in anticipation of drought conditions developing later in Texas. Until this happens, look for the market to trade between 63.75 - 57.96.

    By FuturesHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis.

    Disclaimer: Trading Futures on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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